Here are book- and market-value balance sheets of the United Frypan Company (figures in $ millions): Book-Value Balance Sheet Net working capital $40 Long-term assets Debt 60 Equity $ 100 Market-Value Balance Net working capital 1:40 Long-term assets 189 $ 220 Sheet bebt Equity a. PV tax shield b. WACC c. New value of the firm i $ 60 40 $ 100 5.60 Assume that MM's theory holds except for taxes. There is no growth, and the $60 of debt is expected to be permanent. Assume a 21% corporate tax rate. $ 220 a. How much of the firm's value is accounted for by the debt-generated tax shield? Note: Enter your answer in million rounded to 2 decimal places. b. What is United Frypan's after-tax WACC if pebt 1.6 and requity 15.447 Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. million % million c. Now suppose that Congress passes a law that eliminates the deductibility of interest for tax purposes after a grace period of 5 years. What will be the new value of the firm, other things equal? Assume an 7.6% borrowing rate. Note: Do not round intermediate calculations. Enter your answer in million rounded to 2 decimal places